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Foreclosure Prevention, Refinance, and FPM Report

Foreclosure Prevention, Refinance, and Federal Property Manager's Report - February 2023

Published: 5/11/2023

​​​​​​February 2023 Highlights - Foreclosure Prevention

The Enterprises' Foreclosure Prevention Actions:​

  • The Enterprises completed 19,027 foreclosure prevention actions in February, bringing the total to 6,751,437 since the start of the conservatorships in September 2008. Approximately 39 percent of these actions have been permanent loan modifications.
  • There were 4,813 permanent loan modifications in February, bringing the total to 2,635,180 since the conservatorships began in September 2008.
  • Approximately 73 percent of loan modifications in February involved extend term only. Modifications with principal forbearance accounted for 16 percent of all loan modifications during the month.
  • The number of borrowers who received payment deferrals after completing a COVID-19 related forbearance plan increased 3 percent from 9,020 in January to 9,308 in February 2023.
  • ​Initiated forbearance plans decreased from 12,776 in January to 11,183 in February 2023. The total number of loans in forbearance also decreased from 76,963 at the end of January to 70,637 at the end of February, representing approximately 0.23 percent of the total loans serviced and 13 percent of the total delinquent loans.

The Enterprises' Mortgage Performance: 

  • The 30-59 days delinquency rate increased to 0.94 percent while the serious delinquency rate declined to 0.63 percent at the end of February.

The Enterprises' Foreclosures:​

  • Third-party and foreclosure sales decreased 14 percent to 1,150 while foreclosure starts increased 5 percent to 6,710 in February.

February 2023 Highlights - Refinance Activities

  • Total refinance volume decreased in February 2023 as mortgage rates decreased from the October peak of 6.90 percent but remained high compared to the levels observed earlier in 2022. Mortgage rates fell in February: the average interest rate on a 30-year fixed rate mortgage decreased to 6.26 percent from a January level of 6.27 percent.
  • The percentage of borrowers refinancing into shorter term 15-year mortgages increased but remained in the range of 11 percent in February. The average interest rate savings of a 15-year mortgage over a 30-year mortgage has been higher in 2022 and 2023 compared to previous years. However, over this period, the higher monthly cost of a 15-year mortgage compared to the greater affordability of a 30-year mortgage has limited borrower interest in the 15-year mortgage due to rising mortgage rates.
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